Quad/Graphics Goes Negative

Updated

Quad/Graphics (NYS: QUAD) filed its 10-K on Feb. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Quad/Graphics beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank to a loss.

Margins contracted across the board.

Revenue details
Quad/Graphics logged revenue of $1.31 billion. The three analysts polled by S&P Capital IQ expected to see a top line of $1.28 billion on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $1.26 billion.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.87. The three earnings estimates compiled by S&P Capital IQ predicted $0.96 per share on the same basis. GAAP EPS were -$0.15 for Q4 against $0.55 per share for the prior-year quarter.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.2%, 40 basis points worse than the prior-year quarter. Operating margin was 8.0%, 130 basis points worse than the prior-year quarter. Net margin was -0.6%, 270 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $941.3 million. On the bottom line, the average EPS estimate is $0.15.

Next year's average estimate for revenue is $4.03 billion. The average EPS estimate is $1.82.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 14 members out of 26 rating the stock outperform, and 12 members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Quad/Graphics a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quad/Graphics is hold, with an average price target of $18.67.

Can your retirement portfolio provide you with enough income to last? You'll need more than Quad/Graphics. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement